Australia and New Zealand Water-Cooled Heat Pump VRF Systems Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Australia and New Zealand Water-Cooled Heat Pump VRF Systems Trends & Growth Drivers

Green Building Trends Are Sharping Market

• The preference for green buildings is rising owing to the increasing pollution levels due to the surging carbon emissions and the urge to create a healthy and sustainable environment.
• A green building is characterized by energy efficiency, water conservation, waste reuse and recycling, natural resource consumption reduction, and environmental protection practices. Real estate companies are focusing on the construction of green buildings due to their increasing demand.
• For instance, according to the Green Building Council of Australia (GBCA), Australia is planning to construct only certified green buildings by 2050. It has boosted the requirement for energy-efficient water-cooled heat pump VRF systems in the country.
• The Australian government committed itself to the reduction of greenhouse gas emissions by 5% in 2020 and 26–28% by 2030.
• It aims to achieve these targets via the construction of net-zero energy buildings (NZEBs), which use only as much energy as renewable resources can produce on site.
• The development of NZEBs will increase the demand for energy-efficient solutions, including water-cooled heat pumps.
• This is because due to their ability to balance energy needs and eliminate energy waste, water-cooled heat pump VFR systems are extremely energy-efficient.

Rising Number of Residential and Commercial Construction Projects Drive Market

• The rising number of residential and commercial projects is the major factor propelling the growth of the water-cooled heat pump VRF systems market.
• Heat pumps are frequently employed in commercial and domestic applications due to their ease of maintenance and low energy consumption.
• These systems are both energy-efficient and cost-effective to operate and can be beneficial in household and commercial applications due to their long life.
• Due to the increasing disposable income and rising living standards, the demand for residential units is rising, and many of them will be integrated with heat pump VRF systems for heating and cooling.
• For instance, the West Edge-New Lynn, a residential project in Auckland, New Zealand, involves the construction of 2,088 houses.
• The project costs around USD 3 billion, and it is scheduled to be completed by 2027.

High Cost and Availability of Alternatives Hamper Product Sales

• The initial cost of installing a water-cooled heat pump VRF system can be relatively high when compared to other types of heat pump VRF systems.
• Several technical difficulties, such as in drilling boreholes, are associated with the installation of water-cooled heat pump VRF systems in existing infrastructure, thereby resulting in their lower sales.
• Another important factor impeding the market expansion is the growing popularity of alternatives.
• In many residential and commercial buildings, air-cooled heat pump VRF systems are preferred over water-cooled ones.
• In terms of delivering heat during the cold season and cooling during the hot summer days, an air-cooled heat pump VRF system is mostly used since it is less expensive to install than other types of heating systems.
• This is because it does not require drilling boreholes in the ground or the use of any expensive equipment.

Australia and New Zealand Water-Cooled Heat Pump VRF Systems Market Analysis

Insights by Capacity

The 0 to 50 kW category holds the largest share in 2024, and it will also witness the highest CAGR over the forecast period. Suitability for single-family residential units, as wel las small retail shops and offices, is likely to boost the demand for systems with capacities ranging from 0 to 50 kW during the projection period.

The following capacities have been studied in the report:

• 0 to 50 kW (Largest and Fastest-Growing Category)
• 51 to 100 kW
• Above 100 kW

Insights by Application

The commercial category dominates the market in 2024, and it will grow at the higher CAGR over the forecast period. As the focus on green buildings increases, the demand for these systems in the commercial sector will skyrocket. These systems are preferred over traditional heating systems, such as boilers, in educational institutions, office buildings, and healthcare spaces because of their greater efficiency.

Furthermore, due to environmental concerns, the demand for heating and cooling systems that consume less electricity has risen significantly, which would boost the market for water-source heat pump VRF systems in the two nations.

Due to the high efficiency in maintaining temperature, water-cooled heat pump VRF systems are typically employed in offices. The number of offices and other buildings being built in the metropolises of the two countries has been steadily increasing owing to the growing population.

Furthermore, many more large-scale office development projects are in the works in the BFSI, IT, retail, and other industries, indicating a potential spurt in the heat pump demand in offices. Furthermore, because these systems utilize less energy than many others, the government attempts to limit the air pollution by the generation of power from conventional fuels are driving the demand for them in offices.

The report offers insights on the below-mentioned applications:

• Residential
• Commercial (Larger and Faster-Growing Category)
  • Industries
  • Offices (Largest and Fastest-Growing Category)
  • Healthcare
  • Hospitality
  • Others

Australia and New Zealand Water-Cooled Heat Pump VRF Systems Market Share

• The Australian and New Zealand water-cooled heat pump VRF systems market is fragmented.
• This is on account of the presence of a wide range of companies, which offer a variety of systems for diverse applications, regional variations in brand preference, and price-sensitivity of a certain chunk of the population.
• The evolving energy efficiency regulations, and a major scope for system customization in these systems as per application are also credited for this.
• Additionally, companies use different distribution channels to reach customers, which further drives fragmentation.

Australia and New Zealand Water-Cooled Heat Pump VRF System Company News

• In March 2023, Daikin Ltd. joined the World Business Council for Sustainable Development to enable itself to work with other companies developing energy-efficient HVAC solutions.
• In May 2024, Mitsubishi Electric Corporation launched the Serendie digital platform, which enhances communication between a host of electrical appliances in a building and gathers real-time data from them for operational monitoring predictive maintenance.
• In November 2023, Mitsubishi Electric Corporation unveiled a new aluminum vertical flat tube design for the heat exchangers of heat-pump air conditioners.